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Certified Accounts for Mortgage

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  • 27-06-2015 4:03pm
    #1
    VDD
    Registered Users Posts: 9 ✭


    Hi All,
    I am a Sole trader with a low income (15-20k per annum).
    I do my accounts every year through an accountant.
    My partner and I are looking for a mortgage. Based on her income alone we would be able to secure a mortgage enough for our needs but we want both our names on the title deeds so it must be a joint mortgage.

    So the bank is looking for 3 years certified accounts. What exactly is a certified account? I have not been audited thus far. Is a certified account something my accountant will be able to provide?
    I would not ask except they are not open over the weekend and I am driving myself mad trying to find answers online.
    Many thanks in advance


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    #2
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    Yes, your accountant can provide the certified accounts for you. They probably get these type of requests frequently so should be able to draw them up for you no problem. More than likely will charge you a fee though. Ask about that upfront.


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    #3
    VDD
    Registered Users Posts: 9 ✭VDD


    Many thanks Paul. I didn't know if they were some special type of accounts or just the accounts that the accountant submits on my behalf every year to Revenue.
    Thank you for the reply, much appreciated!


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    #4
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,284 Mod ✭✭✭✭Jim2007


    PaulM1977 wrote: »
    Yes, your accountant can provide the certified accounts for you.

    Oh I doubt that very much... they may give an accountant's report though.


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    #5
    pm1977x
    Registered Users Posts: 1,213 ✭✭✭pm1977x


    Having recently gone through a similar situation, I can confirm it's just your usual yearly accounts stamped and signed by your accountant.


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    #6
    VDD
    Registered Users Posts: 9 ✭VDD


    pm1977x wrote: »
    Having recently gone through a similar situation, I can confirm it's just your usual yearly accounts stamped and signed by your accountant.

    That's good to know PM1977. Many thanks. I'm curious as to why the poster before thought there was little chance of the accountant being able to furnish me with certified accounts.
    If it is just my regular submissions to revenue that is good and should be no problem.
    Thank you for taking the time to respond


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    #7
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    An accountants report used to suffice for a mortgage lender but now they require much more detailed information, i.e. certified accounts which are essentially full accounts for your business, which your accountant signs off on.
    Depending on your business these will have a breakdown of directors, holdings, Profit & Loss, balance sheet including assets, liabilities, outstanding liabilities etc.


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    #8
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,284 Mod ✭✭✭✭Jim2007


    VDD wrote: »
    That's good to know PM1977. Many thanks. I'm curious as to why the poster before thought there was little chance of the accountant being able to furnish me with certified accounts.

    When a bank asks for certified accounts, they expect that the accountant will provide a certificate confirming that all the details are correct. This is not possible since they must rely on the information provided by the client in the first place. Accountants will provide a report that says exactly that, but that may or may not be acceptable to the bank.


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    #9
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Jim2007 wrote: »
    When a bank asks for certified accounts, they expect that the accountant will provide a certificate confirming that all the details are correct. This is not possible since they must rely on the information provided by the client in the first place. Accountants will provide a report that says exactly that, but that may or may not be acceptable to the bank.

    That's nonsense, the lender normally ask for 2/3 years accounts as prepared by your Accountant and is usually supported by Revenue Notice of Assessment for the same years.


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    #10
    PaulM1977
    Banned (with Prison Access) Posts: 210 ✭✭PaulM1977


    Agree with Trish56 on this. Lenders are much more stringent these days, hence the reason an accountants report form will no longer suffice.


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    #11
    VDD
    Registered Users Posts: 9 ✭VDD


    PaulM1977 wrote: »
    Agree with Trish56 on this. Lenders are much more stringent these days, hence the reason an accountants report form will no longer suffice.

    So the accounts that my accountant submitted on my behalf over the last 3 years are not certified accounts?
    Apologies, the terminology is not quite clear to me. What is an acountants report as opposed to a certified account?
    To clarify: My accountant has submitted my tax forms since I started and I have all my notices of assessment from revenue
    Many thanks in advance


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    #12
    Jim2007
    Moderators, Business & Finance Moderators Posts: 10,284 Mod ✭✭✭✭Jim2007


    Trish56 wrote: »
    That's nonsense, the lender normally ask for 2/3 years accounts as prepared by your Accountant and is usually supported by Revenue Notice of Assessment for the same years.

    Technical Statement M14 is typical of what I'm referring to. This is from the CPA, but others have similar statements.


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    #13
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    VDD wrote: »
    So the accounts that my accountant submitted on my behalf over the last 3 years are not certified accounts?
    Apologies, the terminology is not quite clear to me. What is an accountant's report as opposed to a certified account?
    To clarify: My accountant has submitted my tax forms since I started and I have all my notices of assessment from revenue
    Many thanks in advance

    VDD, stop worrying, I can honestly tell you as a sole trader that the annual accounts that your Accountant prepares for you will be acceptable together with your annual Notice of Assessment as evidence of your income for a mortgage. I have never heard of a Technical statement M14 in my life and I'm 40 years in the Financial Services Industry.


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